
According to the New York Times, Meta reduced its tax liability by $4 billion by classifying the processors in its artificial intelligence facilities as 'experimental materials'.
AI-generated summary
The company benefits from tax credits for innovation research using a tax regulation from the 1980s.
In the news of the New York Times newspaper, based on 4 market sources, it was stated that the company stated in its tax declaration to the US Internal Revenue Service (IRS) that "artificial intelligence data centers are a huge experiment that may fail."
The news reported that Meta classified "commercially proven processors", including chips purchased from another company, as "experimental materials" when used in artificial intelligence facilities.
According to IRS records, the news stated that this situation reduced Meta's tax liability for 2025 by approximately 4 billion dollars, and that the company was shown in the IRS record as "the institution that benefited the most from this incentive among public companies".
The news also stated that the strategy in question is based on a tax regulation dating back to the 1980s, and that it provides tax credits for materials used in research "to encourage innovation" instead of standard commercial activities.
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